How Generosity Built Tech Giants
Y Combinator
10 min, 28 sec
A detailed discussion on creating products that provide significant value to customers, addressing common fears and strategies among founders.
Summary
- Founders often fear asking 'dumb questions' but understanding how to genuinely help customers is crucial.
- The conversation emphasizes the importance of creating products that enable customers to make more money than they cost.
- Examples include Google Ads, Microsoft Office, and the early days of Twitch, highlighting the value of truly solving customer problems.
- The dialogue criticizes the practice of building minimum value products just to raise funds, advocating for a customer-centric approach instead.
- The speakers encourage founders to overcome the fear of being too 'consultant-like' by deeply understanding customer needs and offering value upfront.
Chapter 1
![Discussing the significance of founders asking questions to help their customers and create value.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NTUsInB1ciI6ImJsb2JfaWQifX0=--2d10f999ebffe6483ff89e21c6396c73c99af3d3/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_4.jpg)
Discussing the significance of founders asking questions to help their customers and create value.
- Founders should not be afraid to ask questions that may seem simple or obvious.
- Asking the right questions can lead to a better understanding of how to help customers profit from the product.
![Discussing the significance of founders asking questions to help their customers and create value.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NTUsInB1ciI6ImJsb2JfaWQifX0=--2d10f999ebffe6483ff89e21c6396c73c99af3d3/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_4.jpg)
Chapter 2
![Exploring how providing tools that generate profit for customers creates inherent value.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NTcsInB1ciI6ImJsb2JfaWQifX0=--07aa8605c0974952b286973c566aca2b7416bd42/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_45.jpg)
Exploring how providing tools that generate profit for customers creates inherent value.
- Selling a tool that allows the user to earn more than its cost signifies value creation.
- Examples like Google Ads and Microsoft Office products demonstrate how tools can significantly increase user productivity and profit.
![Exploring how providing tools that generate profit for customers creates inherent value.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NTcsInB1ciI6ImJsb2JfaWQifX0=--07aa8605c0974952b286973c566aca2b7416bd42/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_45.jpg)
Chapter 3
![Critiquing the trend of developing low-value products with the primary goal of raising money.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NTksInB1ciI6ImJsb2JfaWQifX0=--001b99b27b99c12d46e98d1b8e95b45ce0423d5b/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_105.jpg)
Critiquing the trend of developing low-value products with the primary goal of raising money.
- Founders may prioritize growth over value, building products that do not effectively solve problems just to attract investment.
- This approach is flawed as it overlooks the need to create actual value for users.
![Critiquing the trend of developing low-value products with the primary goal of raising money.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NTksInB1ciI6ImJsb2JfaWQifX0=--001b99b27b99c12d46e98d1b8e95b45ce0423d5b/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_105.jpg)
Chapter 4
![Addressing the founder's fear of becoming too consultant-like in the pursuit of understanding customer needs.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NjEsInB1ciI6ImJsb2JfaWQifX0=--1929369ceacfa8f4d403fff98668324feb7cbb22/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_169.jpg)
Addressing the founder's fear of becoming too consultant-like in the pursuit of understanding customer needs.
- Founders avoid building highly customized solutions due to the fear that they won't scale or appeal to a broad user base.
- Understanding specific customer problems is essential, even if it means initially acting like a consultant.
![Addressing the founder's fear of becoming too consultant-like in the pursuit of understanding customer needs.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NjEsInB1ciI6ImJsb2JfaWQifX0=--1929369ceacfa8f4d403fff98668324feb7cbb22/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_169.jpg)
Chapter 5
![Emphasizing the value of engaging with customers to understand their problems and create better products.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NjMsInB1ciI6ImJsb2JfaWQifX0=--dadd2ea8fdaf3260cef8e1da57122bc4072e14da/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_263.jpg)
Emphasizing the value of engaging with customers to understand their problems and create better products.
- Engaging deeply with customers can lead to valuable insights and help founders build more applicable and scalable solutions.
- Creating initial, potentially non-scalable solutions can be a learning opportunity that informs future product development.
![Emphasizing the value of engaging with customers to understand their problems and create better products.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NjMsInB1ciI6ImJsb2JfaWQifX0=--dadd2ea8fdaf3260cef8e1da57122bc4072e14da/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_263.jpg)
Chapter 6
![Discussing the importance of offering value in customer outreach and initial product offerings.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NjUsInB1ciI6ImJsb2JfaWQifX0=--aacfd0cc4ffe49fc2a5ed6b36f197f0c31eaf13e/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_368.jpg)
Discussing the importance of offering value in customer outreach and initial product offerings.
- Founders should provide value upfront when reaching out to potential customers, even if it means giving away advice or insights.
- This approach not only helps in building relationships with customers but also in understanding their needs better.
![Discussing the importance of offering value in customer outreach and initial product offerings.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NjUsInB1ciI6ImJsb2JfaWQifX0=--aacfd0cc4ffe49fc2a5ed6b36f197f0c31eaf13e/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_368.jpg)
Chapter 7
![Providing a historical perspective on the tradition of giving away software and value in the tech industry.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NjcsInB1ciI6ImJsb2JfaWQifX0=--ebddd3cbb27a2d56ea9eaa524066fda147dc8748/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_461.jpg)
Providing a historical perspective on the tradition of giving away software and value in the tech industry.
- Historically, software was often given away for free as a means to sell hardware.
- The free software movement and individuals like Richard Stallman played a significant role in the development of widely-used technologies.
![Providing a historical perspective on the tradition of giving away software and value in the tech industry.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NjcsInB1ciI6ImJsb2JfaWQifX0=--ebddd3cbb27a2d56ea9eaa524066fda147dc8748/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_461.jpg)
Chapter 8
![Exploring how free software has been foundational to the growth of the technology industry.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NjksInB1ciI6ImJsb2JfaWQifX0=--629635d779de4e7d147673ab2039f54018b21917/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_543.jpg)
Exploring how free software has been foundational to the growth of the technology industry.
- Many essential technological tools and platforms were created and distributed for free, contributing to the acceleration of progress.
- The ethos of providing more value than what is charged has been a key driver in the success of many tech companies.
![Exploring how free software has been foundational to the growth of the technology industry.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NjksInB1ciI6ImJsb2JfaWQifX0=--629635d779de4e7d147673ab2039f54018b21917/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_543.jpg)
Chapter 9
![Summarizing the discussion with final thoughts on creating customer value and problem-solving.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NzEsInB1ciI6ImJsb2JfaWQifX0=--63a817cfedbfc6bc4b2cf031a0167ce8c57c0549/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_600.jpg)
Summarizing the discussion with final thoughts on creating customer value and problem-solving.
- Founders should focus on solving real customer problems and providing more value than they take.
- This approach aligns with the historical trend in software and can lead to significant success and customer satisfaction.
![Summarizing the discussion with final thoughts on creating customer value and problem-solving.](https://www.videogist.co/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsiZGF0YSI6NjA4NzEsInB1ciI6ImJsb2JfaWQifX0=--63a817cfedbfc6bc4b2cf031a0167ce8c57c0549/eyJfcmFpbHMiOnsiZGF0YSI6eyJmb3JtYXQiOiJqcGciLCJyZXNpemVfdG9fbGltaXQiOls3MjAsbnVsbF19LCJwdXIiOiJ2YXJpYXRpb24ifX0=--c9426325207613fdd890ee7713353fad711030c7/3617_600.jpg)
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